U.S. Retail Sales Drop By Record 2.8%

More signs that consumers are becoming penny pinchers. This from the Globe and Mail:

WASHINGTON — Retail sales plunged by the largest amount on record in October as the financial crisis and the slumping economy caused consumers to sharply cut back on their spending.

The Commerce Department said Friday that retail sales fell by 2.8 per cent last month, surpassing the old mark of a 2.65 per cent drop in November 2001 in the wake of the terrorist attacks that year.

The decline in sales was led by a huge drop in auto purchases, but sales of all types of products from furniture to clothing fell as consumers retrenched.

This is a good sign. People are spending less money, likely putting fewer purchases on credit cards.

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